Businesses opting for a contract hire lease should keep in mind the terms and conditions that such a lease contract stipulates. The terms can be negotiated only when the lease is initiated and not upon signing it or in to the lease term.
The lease term is fixed and the only way to get out of the lease early is by paying a termination charge. The termination fee charged varies between different leasing companies. The mileage allowance set for the particular vehicle make and model is also fixed. Exceeding the mileage allowance laid down by the contract hire lease contract attracts a charge. In fact, a charge is levied for every mile exceeded. Businesses have to keep this in mind to ensure they don’t rake up costs at the end of the lease term.
The contract hire lease contract can come with a maintenance or non maintenance clause. In the latter, all vehicle damages have to be taken care of by the lessee. Some leasing companies also offer vehicle car breakdown coverage as part of the leasing contract. The businesses leasing the vehicle(s) should take care to maintain them well and in accordance with the automaker’s servicing schedule.